Original Article :

Author :

Amma Fathuurrahmaan*1

Mahasiswa Fakultas Ilmu Sosial dan Ilmu Politik

Abstract :

The Indonesian government should be able to increase the capacity of local financial management amid the swift currents of globalization of the world economy. In its development, Indonesia experienced a time lag in implementing performance-based budget policy as a result of the implementation of a centralized and authoritarian system of government. While the risk that arises then is the performance capacity and performance impact on the achievement of development has made achievements in all fields of development and welfare improvement under Singapore Indonesia and Malaysia. Poor human resource capacity and poor governance capacity of local government in adapting to the development of society as a civil society. On this basis, the authors tried to dissect the above problems through the analysis of normative and positifist. The analysis showed that the Indonesian bureaucracy still has weaknesses in terms of Human Resources and Culture bureaucracy. where the weakness is so hamper the effectiveness of policy implementation berbass budget performance in Indonesia. The recommendations given in this analysis is the need for structuring technical procedures to separate the budget process with the development of the policy implementation process is done, then the increase in steering and control of the executive branch based targets, output and outcome targets production, capacity building through training of Indonesian government officials and their manufacture performance measurement system in the form of software through a centralized approach to the performance of contract work plan along with targets specified monthly.